Forget complicated finance jargon. Whether it’s giant bank JPMorganChase or financial technology startup Stripe, offering shoppers the right mix of credit and debit cards and knowing how they use them is the secret to boosting long-term profits.
For companies that issue cards, it’s a constant battle to make sure each customer earns them the most money possible, not just today as they drop five figures on a new set of furniture, but the whole time they stick around.
This crucial measure is called customer lifetime value, or CLTV. Think of it as the total potential revenue a cardholder brings by paying interest and fees over the entire time they hold a card. An additional slice of revenue comes to issuers through interchange fees, typically just under 2%, that are usually paid by the merchant every time a consumer buys something, though some retailers pass those “swipe” charges on to the cardholder.
In today’s tricky economy, with prices fluctuating and people watching their wallets amid an unfolding global trade war, figuring out how to boost that metric is more important than ever. A forthcoming study by PYMNTS Intelligence in collaboration with Visa DPS digs into what makes the real winners — the “best in class“ issuers — stand out. The two-pronged answer: offering a wider variety of cards and getting smart with customer data.
More Is More
The study surveyed 451 executives in the U.S. card world between December 2024 and January 2025. What it found was clear: The more types of cards an issuer offers, the better they tend to perform financially overall.
While lots of issuers offer two types of cards, a small group goes the extra mile and offer all three main types: debit, credit and prepaid cards. This “full spectrum” group isn’t just slightly better off; they are 3.5 times more likely to hit that sweet spot of high CLTV compared to financial institutions that only offer one type of card. Looking at the numbers, nearly half of issuers offering all three types reported high CLTV, while only a meager 12% of single-product issuers did. And if an issuer only offers debit cards? The picture is grim, with the vast majority falling into the low CLTV group.
Why does offering more matter so much? It seems to come down to how customers use their cards. When someone has access to debit for everyday spending, credit for larger purchases or building their credit history, and maybe prepaid for budgeting or specific uses, they’re more likely to use your products for different needs.
This abundance of choice increases overall usage, boosts transaction volume and creates more chances for income like interest and fees from engaged, high-spending users. It’s about building a deeper, more valuable relationship.
Full Lineup
The benefits of offering a diverse card lineup don’t stop at CLTV. The study found that 78% of issuers offering all three card types reported having a “good” or “great” year financially. Almost a quarter of this elite group specifically called it a “great” year. Compare that to just 13% of single-product issuers reporting a “great” year.
Even if an issuer hasn’t reached the full three-card lineup, offering the combination of credit and debit cards appears to be a powerful strategy. Among issuers with both credit and debit, more than 1 in 3 reported a great fiscal year, much higher than those offering a prepaid card alongside debit or credit. The takeaway is clear: While maximum diversity is the goal, having the right mix is crucial.
Despite these clear advantages, most issuers are still playing it safe, with just over 6 in 10 offering just two card types. Most digital-only banks and FinTechs are still sticking to just one type. This might make sense in their early, startup days, but the study suggests that this narrow approach could hurt them in the long run as competition heats up.
Data Is Gold
Behind the most successful issuers is smart technology, especially when it comes to handling data. While everyone knows data is important, the top-tier issuers (those offering all three card types) have different priorities. They demand things like lightning-fast transaction processing (a priority for nearly 70%) and deep access to consumer analytics (61%) from their technology partners. They also care more about reliability, security and advanced reporting.
Lower-performing, often single-product, issuers, however, are more focused on user-friendly interfaces. While making things easy to use is good, this focus on basic usability over powerful data and performance features might point to a less ambitious technology strategy. The best-in-class deploy technology to actively shape the customer experience through personalization and anticipating consumer needs.
Read more:
How Consumers Decide Which Credit Card to Pay With
Best-in-Class Issuers Use Seven Strategies to Boost Customer Lifetime Value, Study Finds
Gen Z Shoppers Turn to Credit Card Installments to Fuel Impulse Buys
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